What is Non-Income Producing Property?
Non-Income Producing Property is a property investment that you can hold for the purpose of negative gearing, and capital growth (increase in the purchase price). Negative gearing refers to the interest that is paid on the loan you would have to purchase the investment property. In most circumstances the interest of this loan can be used as a tax deduction. You would also be anticipating an increase in the purchase price from when you buy to when you sell the property.
Why use Non-Income Producing Property?
Non-Income Producing Property is best suited to you to take advantage of tax advantages and a sharp increase in housing prices. With the rent from this type of property not covering all costs associated with this type of investment.